Newark, Calif.-based Risk Management Solutions (RMS) weighed in on estimating insured losses from the late-April tornado outbreak with a range of $3.5 billion to $6 billion.

The estimate includes losses to personal, commercial, automobile and industrial lines April 25-28.

A large majority—about 70 percent—of the insured losses can be attributed to damages in Alabama, which experienced most of the severe weather during the April tornado outbreak when hundreds of twisters touched down in the U.S.

About 40 percent of the estimated insured-loss range from RMS can be linked to a single tornado—an EF4 twister that swept by Greene, Jefferson and Tuscaloosa counties on April 27.

The historic outbreak from April 25-28 was not the only storm activity during the month. Earlier in April a violent weather system that included hundreds of tornadoes affected multiple states from Oklahoma to North Carolina, and a tornado hit the St. Louis metro area on April 22.

As of May 13, State Farm says it has received about 96,000 homeowners, renters, condominium and commercial insurance claims from storms April 14-29, as well as 37,000 auto claims. The insurer has paid $215 million on claims thus far, but both numbers will grow, “particularly the amount paid,” State Farm says.

Columbus, Ohio-based State Auto Financial Corp. says it expects the April storms will cause between $75 million and $85 million in second-quarter catastrophe losses, net of reinsurance recoveries.

The high end of RMS's range represents the highest insured loss prediction of the three risk modelers, but each use a different date range to define the outbreak. AIR Worldwide estimated losses of up to $5.5 billion from April 22-28. EQECAT said losses could reach $5 billion from April 26-28.

Allstate says it expects $1.4 billion in catastrophe losses in April. Endurance Specialty Holdings says losses for April will be between $45 million and $55 million. Cincinnati Financial Corp. adds its estimate of second-quarter losses in the range of $150 million to $200 million.

Special Reports /

RMS: April Tornado Outbreak To Cost Insurers Up To $6B; Majority Of Loss In Alabama

Related Stories

Recommended For You